Japanese stocks have led the rally in Asian markets following a strong performance on Wall Street, driven by better-than-expected U.S. economic data. The Nikkei 225 index surged 2.9% to reach 37,800.42, marking a week of significant gains after a recent downturn caused by rising interest rates from the Bank of Japan. This increase followed a period of large sell-offs driven by higher costs in “carry trades,” where investors had borrowed yen to invest in dollar assets.
The yen weakened against the U.S. dollar this week, falling to 148.88 yen from 149.27 yen earlier. The currency was trading around 146 yen the previous week, reflecting the impact of recent financial adjustments.
In Hong Kong, the Hang Seng Index gained 1.6%, reaching 17,376.44. The Shanghai Composite Index edged up 0.1% to 2,879.93. The positive momentum in Hong Kong and Shanghai comes amid optimistic signals from China’s central bank. Governor Pan Gongsheng announced new policies aimed at bolstering economic growth for the second half of the year. These include accelerating reforms in the central banking system and focusing on financial technology, alongside a reduction in the burden of local government debt.
Investor attention also turned to major e-commerce companies in the region. Alibaba Group Holding reported a 4% increase in second-quarter revenue, leading to a 3.7% rise in its Hong Kong-listed shares, despite falling short of expectations. JD.com, another major player in the e-commerce sector, saw its shares climb 8.9% after reporting quarterly profits that exceeded forecasts.
In South Korea, the Kospi index rose 1.8% to 2,692.65, while Australia’s S&P/ASX 200 advanced 1.3% to 7,962.40. The broader gains across Asian markets reflect a positive reaction to both the U.S. economic data and ongoing developments in regional financial policies.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
